Vedanta has been served with a penalty order amounting to Rs. 15.43 lakh by the Assistant Commissioner of GST and Central Excise in Jharsuguda, Odisha. The action stems from alleged irregularities in the use of Central Value Added Tax (CENVAT) credits during the financial year 2016–17.
In a regulatory filing, Vedanta confirmed receipt of the order on July 23, stating that it pertains to the payment of Central Excise Duty in the said fiscal year. Along with the penalty, the Odisha tax authorities have also demanded the payment of the disputed tax amount and applicable interest.
The penalty order, dated June 19, will be contested by the company. Vedanta has announced its intent to appeal before the appropriate legal forum. “We are hopeful of a favourable verdict and do not foresee any material financial implications arising from the order,” the company stated.
History of Tax Disputes
This is not the first time Vedanta has found itself at odds with tax authorities. On May 21, 2025, the company received a penalty order worth ₹1.8 crore from the Coimbatore Commissioner of GST and Central Excise. That dispute revolved around the use of CENVAT credit for purchases made between February 2010 and March 2011.
Just days earlier, on May 16, a significantly larger penalty of ₹146 crore was issued by the Principal Commissioner of Central Tax in Visakhapatnam. That case involved the alleged non-payment of Special Additional Excise Duty related to Videocon share transactions.
Iron Ore Mining Expansion
Amid ongoing tax battles, Vedanta also announced a strategic win on the resource front. On July 23, the company revealed it had been declared the preferred bidder for the Janthakal Iron Ore Mine in Karnataka. The mine spans 71.16 hectares, and Vedanta is now working toward securing the necessary clearances and submitting the required Performance Bank Guarantee. Once these formalities are complete, the firm will receive a licence to commence mining operations.
The development aligns with Vedanta’s broader strategy to secure critical mineral resources and expand its presence in the Indian mining sector.
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